Revenue Grows by 1,367% as Total Liabilities Decrease Nearly 50%
Fort Lauderdale, FL, April 02, 2026 (GLOBE NEWSWIRE) -- Algorhythm Holdings, Inc. (the "Company") (NASDAQ: RIME) - a leading AI technology company, announced today its results of operations for the year ended December 31, 2025.
2025 Financial Highlights
- Revenue increased $4.1 million, or 1,367%, to $4.4 million for the year ended December 31, 2025 compared to $0.3 million for the year ended December 31, 2024.
- Operating expenses decreased $1.6 million, or 19.5%, to $6.6 million for the year ended December 31, 2025 from $8.2 million for the year ended December 31, 2024.
- Net loss decreased $7.8 million, or 32.0%, to $16.6 million for the year ended December 31, 2025 compared to $24.4 million for the year ended December 31, 2024, of which $6.8 million and $8.9 million, respectively, was for non-cash warrant-related charges.
- Total liabilities decreased $14.2 million, or 49.3%, to $14.6 million as of December 31, 2025 from $28.8 million as of December 31, 2024.
- Cash on hand was $6.1 million as of December 31, 2025 compared to $7.2 million as of December 31, 2024.
"We are very pleased with the progress we made this past year boosting revenue while cutting expenses," stated Gary Atkinson, Chief Executive Officer of Algorhythm Holdings. "During the year, we scaled our SemiCab business to over $4.4 million in revenue, which was generated over only the 8-month period that we owned SemiCab India, achieving an annualized revenue run rate (ARR) of approximately $10 million as we exited December 2025. We also cut our operating expenses by almost 20%, which helped bring down our net loss by nearly 32% between 2024 and 2025."
"We also strengthened our balance sheet during 2025," added Alex Andre, Chief Financial Officer of Algorhythm Holdings. "We had cash of $6.1 million at December 31, 2025, which increased to $10.9 million as of March 25, 2026, putting us in a strong cash position to support the growth and development of our business for the remainder of 2026. We also reduced our liabilities by almost 50% between December 31, 2024 and 2025, significantly improving our balance sheet. We expect to further strengthen our balance sheet during the remainder of 2026."
2025 Business Highlights
During 2025, SemiCab achieved five new contract wins with some of the largest multinational fast moving consumer goods companies (FMCGs) in India, and was awarded six contract expansions for increased lanes and trip volume ranging between 100% and 600%, including the following:
- In June, the company announced that SemiCab was awarded a multi-million-dollar expansion by Procter & Gamble India covering new geographic regions across the country.
- In July, the company announced that Kellanova awarded SemiCab a significant expansion into new freight lanes following a successful pilot program.
- In August, the company announced that SemiCab signed a new master service agreement with Bajaj Electricals, one of the largest electronics manufacturers in India, with over $560 million in annual sales.
- In November, the company announced that SemiCab was awarded a contract expansion by Marico of up to $3 million for freight coverage across key India distribution lanes.
- In December, the company announced that Asian Paints, one of the 10 largest global shippers in the paints industry, awarded SemiCab a $6 million contract expansion, the largest in its history, increasing Asian Paints' active lanes from 25 to 183.
Algorhythm Holdings also evolved substantially during 2025, marked by numerous business achievements:
- The company acquired SMCB Solutions, which owns the India segment of our SemiCab business.
- SemiCab launched "Apex", its new software-as-a-service (SaaS) platform that brings SemiCab's proven AI-driven collaborative logistics technology to 3PLs and multi-enterprise shippers in the United States and Europe.
- SemiCab secured a supply chain finance receivables facility with Bank of America to provide its India business with access to millions of dollars of low-cost, non-dilutive working capital.
- SemiCab won "Best Value" Award from its largest customer at LogiMeet 2025.
Outlook for 2026
Algorhythm Holdings enters 2026 with a rapidly growing global footprint, a quickly expanding enterprise customer base, and an asset-light SaaS strategy designed to improve the company's margins and the scalability of its software. SemiCab's deep pipeline of FMCGs in India and new Apex SaaS platform will drive new enterprise pilots across the United States and Europe. Looking ahead, Mr. Atkinson said he expects strong revenue growth to continue throughout 2026.
"SemiCab has evolved into a leading high-growth AI logistics company that is delivering real savings, real efficiency gains, and real environmental benefits to some of the world's largest shippers," stated Mr. Atkinson. "During 2025, we achieved five new contract wins and were awarded six contract expansions that helped us hit an ARR of approximately $10 million during December. So far in 2026, we have already announced two new contract wins with Coca-Cola India and MTR Foods and a contract expansion with Unilever India, further bolstering our quickly growing ARR."
"We recently marked our entry into the $450 billion U.S. full-truckload market through our new Apex SaaS platform," continued Mr. Atkinson. "Apex will provide us with asset-light recurring revenue, high gross profit margins from platform licensing, accelerated market penetration through white-label partnerships, and a growing data ecosystem that strengthens AI accuracy and customer value. Apex provides 3PLs and enterprise shippers with a flexible, scalable solution that enhances - rather than replaces - their existing transportation systems, enabling them to reduce empty miles by up to 70%. We're very excited to offer our technology solutions to new customers, new markets, and new geographies this year."
Management will host a conference call on Wednesday, April 2, 2026, at 10:00 a.m. Eastern Time to discuss the financial results and provide a business update.
Conference Call Details:
Date: Wednesday, April 2, 2026
Time: 10:00 a.m. EDT
Dial-in number: 888-999-3182
Conference ID: RIME
About Algorhythm Holdings
Algorhythm Holdings, Inc. is a leading AI technology company focused on the growth and development of SemiCab, an emerging leader in the global logistics and distribution industry. Since 2020, SemiCab has enabled major retailers, brands and transportation providers to address common supply-chain problems globally. Its AI-enabled, cloud-based Collaborative Transportation Platform achieves the scalability required to predict and optimize millions of loads and hundreds of thousands of trucks. SemiCab uses real-time data from API-based load tendering and pre-built integrations with TMS and ELD partners to orchestrate collaboration across manufacturers, retailers, distributors, and their carriers. SemiCab uses AI/ML predictions and advanced predictive optimization models to enable fully loaded round trips. With SemiCab's AI platform, shippers pay less and carriers make more without having to change a thing. For additional information, please go to: http://www.semicab.com.
Investor Relations Contact
Brendan Hopkins
407-645-5295
investors@algoholdings.com
www.algoholdings.com
Media Contact
FischTank PR
Algorhythm@fischtankpr.com
Forward Looking Statements
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Any statement that is not historical in nature is a forward-looking statement and may be identified by the use of words and phrases such as "expects," "anticipates," "believes," "will," "will likely result," "will continue," "plans to," "potential," "promising," and similar expressions. These statements are based on management's current expectations and beliefs and are subject to a number of risks, uncertainties and assumptions that could cause actual results to differ materially from those described in the forward-looking statements, including the risk factors described from time to time in Algorhythm's reports to the SEC, including, without limitation Algorhythm's Annual Report on Form 10-K for the year ended December 31, 2025. You should not place undue reliance on any forward-looking statement, each of which applies only as of the date of this press release. Except as required by law, we undertake no obligation to update or revise publicly any of the forward-looking statements after the date of this press release to conform our statements to actual results or changed expectations, or as a result of new information, future events or otherwise.
Algorhythm Holdings, Inc. and Subsidiaries
CONSOLIDATED BALANCE SHEETS
| December 31, 2025 | December 31, 2024 | |||||||
| Assets | ||||||||
| Current Assets | ||||||||
| Cash | - | 1,632,000 | - | 7,233,000 | ||||
| Restricted cash | 4,514,000 | - | ||||||
| Accounts receivable, net of allowances of $113,000 and $127,000, respectively | 1,061,000 | 121,000 | ||||||
| Accounts receivable, related party | - | 701,000 | ||||||
| Prepaid expenses and other current assets | 729,000 | 59,000 | ||||||
| Current assets of discontinued operations | - | 8,649,000 | ||||||
| Total Current Assets | 7,936,000 | 16,763,000 | ||||||
| Property and equipment, net | 22,000 | 2,000 | ||||||
| Other non-current assets | 79,000 | - | ||||||
| Intangible assets, net | 2,005,000 | 345,000 | ||||||
| Goodwill | 2,682,000 | 786,000 | ||||||
| Non-current assets of discontinued operations | - | 406,000 | ||||||
| Total Assets | - | 12,724,000 | - | 18,302,000 | ||||
| Liabilities and Shareholders' Equity | ||||||||
| Current Liabilities | ||||||||
| Accounts payable | - | 1,413,000 | - | 387,000 | ||||
| Accrued expenses | 1,556,000 | 1,746,000 | ||||||
| Other current liabilities | 69,000 | - | ||||||
| Warrant liability | - | 16,603,000 | ||||||
| Promissory notes payable, net | 9,102,000 | 50,000 | ||||||
| Current portion of notes payable to related parties | 2,300,000 | 265,000 | ||||||
| Current liabilities of discontinued operations | - | 9,387,000 | ||||||
| Total Current Liabilities | 14,440,000 | 28,438,000 | ||||||
| Long-term provision for employee benefits | 144,000 | - | ||||||
| Notes payable to related parties, net of current portion | - | 385,000 | ||||||
| Total Liabilities | 14,584,000 | 28,823,000 | ||||||
| Commitments and Contingencies | ||||||||
| Shareholders' Equity (Deficit) | ||||||||
| Preferred stock, $1.00 par value; 1,000,000 shares authorized; no shares issued and outstanding at December 31, 2025 and December 31, 2024 | - | - | ||||||
| Common stock, $0.01 par value; 800,000,000 and 100,000,000 shares authorized; 3,414,542 and 470,825 shares issued and outstanding at December 31, 2025 and December 31, 2024 | 35,000 | 5,000 | ||||||
| Additional paid-in capital | 65,674,000 | 39,682,000 | ||||||
| Accumulated other comprehensive loss | (25,000 | - | - | |||||
| Accumulated deficit | (65,043,000 | - | (49,172,000 | - | ||||
| Non-controlling interest | (1,743,000 | - | (1,036,000 | - | ||||
| Treasury stock, 10,990 and -0- shares reserved at December 31, 2025 and December 31, 2024 | (758,000 | - | - | |||||
| Total Shareholders' Deficit | (1,860,000 | - | (10,521,000 | - | ||||
| Total Liabilities and Shareholders' Deficit | - | 12,724,000 | - | 18,302,000 | ||||
See notes to the consolidated financial statements
Algorhythm Holdings, Inc. and Subsidiaries
CONSOLIDATED STATEMENTS OF OPERATIONS
| Year Ended | ||||||||
| December 31, 2025 | December 31, 2024 | |||||||
| Net Sales | - | 4,391,000 | - | 297,000 | ||||
| Cost of Sales | 5,706,000 | 491,000 | ||||||
| Gross Loss | (1,315,000 | - | (194,000 | - | ||||
| Operating Expenses | ||||||||
| Selling expenses | 4,000 | - | ||||||
| General and administrative expenses | 6,629,000 | 4,656,000 | ||||||
| Impairment of goodwill | - | 3,592,000 | ||||||
| Total Operating Expenses | 6,633,000 | 8,248,000 | ||||||
| Loss From Operations | (7,948,000 | - | (8,442,000 | - | ||||
| Other Expenses | ||||||||
| Change in fair value of warrant liability | (6,468,000 | - | 334,000 | |||||
| Loss on issuance of warrants | - | (8,889,000 | - | |||||
| Interest expense, net | (747,000 | - | (1,887,000 | - | ||||
| Total Other Expenses | (7,215,000 | - | (10,442,000 | - | ||||
| Loss From Continuing Operations Before Income Tax | (15,163,000 | - | (18,884,000 | - | ||||
| Income tax loss attributable to continuing operations | (47,000 | - | - | |||||
| Net Loss From Continuing Operations | (15,210,000 | - | (18,884,000 | - | ||||
| Net loss from discontinued operations | (1,362,000 | - | (5,483,000 | - | ||||
| Net Loss | (16,572,000 | - | (24,367,000 | - | ||||
| Net loss attributable to non-controlling interest | 701,000 | 1,110,000 | ||||||
| Net Loss Available to Common Shareholders | - | (15,871,000 | - | - | (23,257,000 | - | ||
| Loss Per Common Share | ||||||||
| Basic and diluted from continuing operations | - | (5.86 | - | - | (270.44 | - | ||
| Basic and diluted from discontinued operations | (0.55 | - | (83.43 | - | ||||
| Basic and diluted | - | (6.41 | - | - | (353.87 | - | ||
| Weighted Average Common and Common | ||||||||
| Equivalent Shares: | ||||||||
| Basic and diluted | 2,475,293 | 65,722 | ||||||
See notes to the consolidated financial statements
